Brokers Set Expectations for Watsco’s Q2 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Equities researchers at William Blair cut their Q2 2025 earnings per share (EPS) estimates for shares of Watsco in a report released on Tuesday, February 18th. William Blair analyst R. Merkel now anticipates that the construction company will post earnings of $5.10 per share for the quarter, down from their previous forecast of $5.12. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco’s FY2026 earnings at $16.40 EPS.

Watsco (NYSE:WSO) last issued its quarterly earnings data on Tuesday, February 18th. The construction company reported $2.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.13 by $0.24. Watsco had a return on equity of 17.59% and a net margin of 7.04%. The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.67 billion.

Other research analysts also recently issued reports about the company. Northcoast Research initiated coverage on Watsco in a report on Friday, November 22nd. They issued a “neutral” rating for the company. Raymond James initiated coverage on Watsco in a report on Friday, January 17th. They issued a “market perform” rating for the company. Finally, Robert W. Baird boosted their price target on Watsco from $540.00 to $560.00 and gave the company an “outperform” rating in a report on Wednesday. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Watsco currently has an average rating of “Hold” and a consensus price target of $495.00.

Watsco Price Performance

Shares of Watsco stock opened at $498.12 on Friday. Watsco has a 1 year low of $380.58 and a 1 year high of $571.41. The company has a market capitalization of $20.11 billion, a P/E ratio of 37.59 and a beta of 0.95. The business has a 50 day moving average price of $484.75 and a 200 day moving average price of $492.16.

Watsco Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 31st. Stockholders of record on Friday, January 17th were paid a dividend of $2.70 per share. The ex-dividend date was Friday, January 17th. This represents a $10.80 annualized dividend and a dividend yield of 2.17%. Watsco’s dividend payout ratio is presently 81.51%.

Insider Transactions at Watsco

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of the business’s stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total transaction of $5,589,293.58. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 12.86% of the company’s stock.

Hedge Funds Weigh In On Watsco

A number of large investors have recently modified their holdings of WSO. Creative Planning raised its holdings in shares of Watsco by 7.7% in the 3rd quarter. Creative Planning now owns 5,212 shares of the construction company’s stock worth $2,564,000 after purchasing an additional 371 shares during the period. Blue Trust Inc. raised its holdings in shares of Watsco by 139.5% in the 3rd quarter. Blue Trust Inc. now owns 527 shares of the construction company’s stock worth $244,000 after purchasing an additional 307 shares during the period. International Assets Investment Management LLC raised its holdings in shares of Watsco by 48,984.7% in the 3rd quarter. International Assets Investment Management LLC now owns 233,643 shares of the construction company’s stock worth $114,924,000 after purchasing an additional 233,167 shares during the period. Impact Partnership Wealth LLC purchased a new position in shares of Watsco in the 3rd quarter worth about $397,000. Finally, IFM Investors Pty Ltd raised its holdings in shares of Watsco by 1.7% in the 3rd quarter. IFM Investors Pty Ltd now owns 7,356 shares of the construction company’s stock worth $3,618,000 after purchasing an additional 123 shares during the period. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Company Profile

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.